As the real estate market is facing many different threats in today’s economy, health care real estate investment may provide a welcome reprieve from consistently low-interest returns. Many factors explain why healthcare real estate could be a sustainable profit for you.
1. Baby Boomers Are Aging
Baby boomers are getting older. With that comes an increasing need for health care. In the foreseeable future people, 65 or older, will soon outnumber those 18 and younger. These numbers create a viably large pool of the population that requires consistent health care. With this fact comes many who want to stay home for as long as they possibly can while they age. Because of this, an increase in outpatient facilities will become necessary to serve the aging generation adequately. As our population both grows and ages, our need for healthcare locations will rise as well.
2. Technological Advances Create Growth In Outpatient Services
We are well into the 21st century and with every year that passes come even more significant technological advancements. With a large number of these advancements being made toward the healthcare industry, there will also be a greater need for locations to house these advancements. Monitoring systems for doctors to monitor patients right from their homes instead of a hospital room will create a rising demand for outpatient facilities. Add that to the desire for those aging to stay at home, and you have a recipe for a continually growing, sustainable, and increasingly profitable healthcare real estate sector.
3. Longer Life-Spans Create Longer Medical Attention
Baby boomers are living longer than ever before, and right behind them is a generation that may very well live longer than that. As the populations grow, births are replacing people who haven’t yet passed on; there’s a vast population that is in need of services. Despite the growing number of businesses jumping to capitalize on the healthcare industry, we aren’t near exceeding the demand yet. We aren’t likely to exceed this demand any time soon due to the steadily increasing population.
4. Healthcare For All – An Increasing Possibility
With healthcare for all being a subject being broached more and more often, it’s not unrealistic to expect this as a possibility or even probability in our future. With Gen-X widely becoming voting adults, the healthcare system, as we know it, might be completely reconfigured. Though “welfare for all,” or healthcare for all, might put a much larger focus on cost-reduction on the whole, there is still a massive increase in healthcare needs that would create an increase in real estate needs regardless. Although this might put some risk into the equation, healthcare real estate is something that is going to continue to be something the public requires more of no matter what happens with our healthcare system.
5. Single-Tenant Healthcare Buildings On The Rise
Net-lease landlords, in particular, should be paying very close attention to the steady rise in demand for single-tenant healthcare buildings. These buildings are returning assets in double as the rent, and interest rates for these buildings increase with the market. Medical single-tenant buildings are gaining more profit per square footage than any other sector of single-tenant establishments in the market today. In a vastly competitive marketplace, this is not a stat you want to ignore.
6. A More Stable Market
Uncertainty on returns is a constant plague on real-estate investors. With e-commerce being a source of concern for many of these investors, you’d be hard-pressed to find anyone who wouldn’t trade that uncertainty for a stable, more ensured market. Healthcare real estate provides that surety to you. With much less risk from e-commerce, healthcare real estate seems to be a stable investment for returns. Take the sweat of your brow for at least one of your investment choices by investing in healthcare real estate. Diversify your portfolio and take a moment to relax by making this smart investment.
In a world of uncertainties, there is nothing more likely than a significant population increase in our future. With that comes a rise in healthcare needs. As annual returns have nearly doubled in many instances over the last few years, healthcare real estate seems just to be growing in potential while other markets run dry. Demand for healthcare locations is indefinitely on the rise with our aging generations and ever-growing technological advances. It’s not hard to understand why so many are flocking to jump on the healthcare bandwagon in real estate investment.